Fox Resources buys iron ore prospects

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Nickel and copper miner Fox Resources has expanded into the
booming iron ore market by acquiring two Pilbara projects.

Fox's shares jumped 12 per cent on Friday, after the group
announced a $8.7 million share and options placement, at 58c a
share, to help fund the purchase, increasing its market
capitalisation to about $60 million.

Fox's newly acquired Cape Lambert site is just 30 kilometres
from its Radio Hill nickel-copper operations, meaning it can share
some of the infrastructure. The other project, Bandicoot, is a
joint venture with nickel miner Heron Resources, which has recently
attracted interest from BHP and Inco.

The Cape Lambert project was previously owned by Robe River
Mining, a subsidiary of Rio Tinto. Robe conducted feasibility work
in the 1990s and drilled 189 holes but the results cannot be issued
to the market because they do not comply with the Joint Ore
Reserves Committee standards.

Fox managing director Brett Matich said the company was
targeting a deposit mineralisation of 250 to 500 million tonnes,
iron content above 30 per cent.